What others have done Possible explanations and related literature Many workers are surprised by inadequate resources when they retire(not consistent with life-cycle model rational expectations) Work related expenses Home production and/or more efficient shopping (Aguiar and hurst, 2005, Hurd and rohwedder 2006) Miniaci et al(2003)estimate by ols the italian retirement consumption drop at 5.4%Possible explanations and related literature: • Many workers are surprised by inadequate resources when they retire (not consistent with life-cycle model & rational expectations). • Work related expenses. • Home production and/or more efficient shopping (Aguiar and Hurst, 2005, Hurd and Rohwedder, 2006). • Miniaci et al (2003) estimate by OLS the Italian retirement consumption drop at 5.4%. What Others Have Done